Oil cost falling as Saudi ups output

Oil prices were falling today on hopes that Saudi Arabia, the world's biggest oil producer is about to turn on the taps and increase output from the Middle Eastern kingdom's oil wells to their highest levels in decades.

Turning on the taps: Saudi Arabia will increase oil output to help regulate prices

Ahead of an emergency summit meeting next weekend of the world's biggest oil producers, Saudi's King Abdullah has signalled that he is prepared to step in and re-balance fears that demand from the likes of China and India is outpacing global supply.

According to United Nations chief Ban Ki-Moon, the Saudi monarch has conceded 'oil prices are currently abnormally high and he is willing to do all that is possible to bring prices to their appropriate levels'.

On those hopes, crude for July delivery traded on the New York market fell 77 cents to $134.09 a barrel following a drop of $2 in Friday trading.